An estoppel letter, also called an estoppel certificate, is a statement issued by a community association that shows what is owed on a home or unit as of a certain date. It is requested when a property inside a homeowners association or condominium is being sold or refinanced, so that every amount due to the association can be paid at closing.
This article is general information and is not legal advice. The association's attorney should be consulted about a specific closing.
What an Estoppel Letter Covers
In Florida, the contents of the certificate are set by statute: section 720.30851 for homeowners associations and section 718.116(8) for condominiums. The certificate is expected to show, among other things:
- The regular assessment amount, how often it is billed, and the date it is paid through
- Any unpaid assessments, special assessments, interest, late fees, and attorney fees
- Any capital contribution, transfer fee, or resale fee that is due at closing
- Whether open violations have been noticed to the owner in the association's records
- Whether board approval of the transfer is required, and whether a right of first refusal exists
- Contact information for the association's insurance and for other associations the parcel belongs to
- The date of issue and the signature of the person who completed it
Who May Request It and How Quickly It Is Due
A certificate may be requested by the owner, by the owner's designee, or by a mortgagee or its designee. In practice, the request is usually made by the title or closing agent.
The certificate must be issued within 10 business days after a written or electronic request is received. It may be completed by a board member, an authorized agent, or an authorized representative of the association, which includes the manager or the management company. A person and a street or email address for estoppel requests must be named on the association's website.
A certificate that is delivered by hand or electronically is effective for 30 days. One that is sent by regular mail is effective for 35 days. If something changes during that period, an amended certificate may be issued at no extra charge.
What It Costs
A reasonable fee may be charged for preparing the certificate, and the fee is capped by statute. The base amounts written into the law are:
- Up to $250 when no delinquent amounts are owed
- An additional $100 when the certificate is requested on an expedited basis and delivered within 3 business days
- An additional $150 when delinquent amounts are owed
These caps are adjusted for inflation every five years, and the current amounts are published by the Florida Department of Business and Professional Regulation. If a certificate is not delivered within the 10 business days, no fee may be charged for it. The fee is normally collected at closing. If the sale does not close, the fee remains the owner's responsibility, and a title agent who paid it in advance may ask for a refund when the request is supported in writing.
Why the Numbers Are Binding
The word estoppel means that the association is held to what it stated. Under Florida law, the right to collect any amount beyond what is shown on the certificate is waived against a person who relied on it in good faith, along with that person's successors. A buyer, lender, and title insurer can therefore close with confidence that no surprise balance will follow the property.
For that reason, the owner's ledger should be checked carefully before a certificate is issued. Unposted payments, pending special assessments, and open violations should all be confirmed first.
How It Fits Into the Closing
Clear title is expected by the buyer and required by the lender and the title insurer. Because unpaid assessments can become a lien on the property, a title company will generally not close without a current certificate. The amounts shown are paid from the seller's proceeds, and any fee owed by the buyer under the governing documents is collected at the same time.
Estoppel Requests for Communities We Manage
For associations managed by Condominium Associates, estoppel certificates are prepared by our accounting team from the association's records. Owners and closing agents with questions can reach us through our
contact page. More on association records can be found in our post on
who can access HOA documents.
